Orange Finance in receivership
Receivers have been appointed to Doug Somers-Edgar's finance company Orange Finance after a threee-year moratorium failed to turn the company's fortunes around.
Friday, August 3rd 2012, 9:07AM
by Niko Kloeten
The company went into moratorium in August 2009 after its debenture holders voted for the option instead of receivership.
However, Somers-Edgar said last month that the company's trustee, Covenant, was likely to appoint receivers by the end of the month.
According to the Companies Office, Grant Graham and Brendon Gibson of KordaMentha have been given the task of trying to extract the remaining value from the company's loan book.
Orange Finance owed $25.6 million to about 2500 debentureholders at the time it was placed into moratorium, with the number later revised to $23 million.
Since then it has repaid investors $12.7 million, with $10.3 million outstanding.
However, the company has only $6.8 million in financial assets remaining, including $6.2 million in loans, all of which are considered to be impaired.
In the past year $2.4 million worth of bad debt has been written off.
Somers-Edgar's company, Matrix Funding Group, has been managing the company through its moratorium, with Somers-Edgar receiving no director's fees, salaries or dividends.
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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